Geoarbitrage is a way of cutting costs and gaining free time by outsourcing mundane time-sucking tasks and using resources where they are found at a lower price. Many are familiar with Tim Ferriss, the author of the best seller "4-Hour Work Week". Ferriss was largely responsible for popularizing geoarbitrage by demonstrating that a person could get more out of a busy day without working harder. Since his book became a best seller, geoarbitrage has become a common term amongst businesspeople and travelers. It has become a way to work smarter, and easier.
Outsourcing is a common tool that life hackers use to increase their daily productivity and maximize their free time. Life hackers do this by calculating the dollar value of their time, and hiring virtual assistants overseas to accomplish any tasks that can be completed for less than the value of their time. By outsourcing the less-important tasks in their day, life hackers are able to focus on important tasks and accomplish more with their day.
Life hackers also use geoarbitrage to reduce their cost of living. They do this by relocating to countries where living costs are lower and benefits are higher than in their home country. For example, a U.S. citizen running an online business may benefit from moving to Panama or the Cayman Islands, where the cost of living is much lower or the tax benefits are much higher than in the US.
Geoarbitrage is also used to acquire resources and use services at lower prices. In "4-Hour Work Week, Ferris uses the example of getting dental surgery while on vacation in a country where dental bills cost significantly less than in the United States - hitting two birds with one stone so to say. Other examples may include buying diamonds duty free in the Cayman Islands at prices well bellow retail prices or traveling to countries like Vietnam where nice hotels can be found for less than $15 a night.
Outsourcing is a concept where you make use of services other people are willing to perform at a lower rate than what you are getting paid doing the same task. Outsourcing any given task is an excellent way to illustrate how the quality of your life may improve. Example: You have an important meeting to attend, but someone else paid you to complete an important task and it clashes with your meeting. But, you are in luck as you have a virtual assistant elsewhere that are able to do fulfill the given task. She does it for $10 while you are being paid $20 for arguments sake.
Geoarbitrage Helps You To Be More Productive
It is not a case of ripping anybody off when you outsource work that was originally assigned to you, it is a matter of being efficient. Just because you are paying someone $10 for doing a task that you are being paid $40 for, does not mean the person you allocated the task to is losing out. Ten dollars an hour can be good money for someone in a country of lower financial resources. Geoarbitrage is very useful as a life hack that helps you to be more productive, and enjoy longer days. Leveraging geoarbitrage as a life hack will certainly improve the quality of your life. It is no wonder that life hackers everywhere are now starting to use the power of geoarbitrage as a lifestyle hack.
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